021_F&A_MN_PR_CCD_22022020 (Sales Order - Payment terms capturing and customer ageing)

021_F&A_MN_PR_CCD_22022020 (Sales Order - Payment terms capturing and customer ageing)

Dear All,

 

There always seems to be a confusion with respect to payment terms between F&A and Sales.

We have tried to address the same at multiple times at one go but it does not seem to be working.

 

In order to address the above following modality will be adopted with immediate effect step by step (Also shown in the attached Flow chart):

 

  • For every customer there is customer master which has a payment term attached to it, based on the Credit application submitted (assuming this is right).
  • Every time while a Sales Order is created this payment term automatically populates in the SO. However, there is an option to change this, if a different payment term is agreed with the client for that particular SO. The screenshot is given below.
  • If the payment terms are better than the default payment terms as per the master. Sales coordinators can approve the same.
  • If the payment terms are worse than as per the master records than Sales  coordinator should send back the SO to sales executives who need to do one of the two:
    1. Get the exception approval on the Client PO by Sales Head and Finance Head as one-off case.
    2. Submit a newly revised credit change form if this is going to be a regular feature.
  • After necessary approval SO can be resubmitted with the approvals, Sales Coordinators can approve the SO in the system for further processing.

 

Points to be noted by the Sales Coordinators:

  • To check each SO for the payment terms deviation from the customer Master.
  • In case of any deviation from the master to reject the SO (if worse than customer master) and ensure that necessary approvals are taken.
  • Ensure that the payment terms in the SO are matching with Client PO.

 

Immediate Benefits:

  • This will give proper aging for each Invoice related to that SO, separate from the customer master data. Thus providing more accurate data of customer aging.
  • Also if this is an LC order there may be a possibility of capturing SO and the payment terms in the customer aging thus giving breakup of LC related invoices as well.

 

This needs to be adopted with immediate effect.

In case of any queries please get in touch with us.

 

 

 

Thanks & Regards,

Piyush

 



    • Related Articles

    • F&A_MN_PL_CCD_31082019_004 (Customer Credit Terms Master)

      Useful: For the CCD/F&A/Sales   Dear All,   It was observed that there were multiple credit terms in SAP which lead to lot of confusion. Further in some of the credit terms the days calculated by SAP were also not correct because the master data ...

    • F&A_MN_PR_CCFR_28082019_003 (Customer Collection Forecast and Reporting)

      Useful: For the Management team/CCD/F&A/Sales   Dear All,   It is observed that there are certain inconsistencies in the way we report our collection which sometimes result in reporting the same collection in two months or reported twice. Following ...

    • 028_F&A_MN_PR_CI_26042020 (Customer Down Payment Request - DPR for Advance)

      Useful – For all Sales/CCD and F&A   Dear All,   As you are aware that Receipts accounting is now handled from a remote location. In order to make it successful we need to streamline the process as much as possible.   There can generally be following ...

    • 018_F&A_MN_PR_CI_02022020 (Tracing Export Sales)

      Useful: For all Sales/CCD and F&A Dear All, From long a need was felt to trace Export Sales. Finally, we found the mechanism to do that. All export sales will now be recorded under the specific GL “400001 – Export Sales”. However, please note the ...

    • 020_F&A_MN_PL_CCD_12022020 (New Credit Application and Enhancement)

      Dear All,   Further to feedback from sales and CCD there are few changes which are incorporated in Credit application forms. Attached are the revised application for your ready reference and immediate usage.   Thanks & Regards, Piyush Useful: For all ...